The Analysis Of Merger & Acquisition Value Effects And Its Effect Mechanism Of List Companies In China

This report was started with the analysis of the conception of value effect, identified the target of weighting the value effect of Mergers & Acquisitions (M&A), which is the change of enterprise value. In terms of tidy the development evolution of the enterprise value theoretical system and comparative analysis of different evaluation technical methodology, it has been chosen the Economic Value Added (EVA) which is the advantaged tool to analyze the M&A activities of list companies in our country in 2002. The affect mechanism of M&A value effect has been analyzed from two aspects. Firstly, it was concluded the motivation for M&A, divided the passive motivation for investigation into several origin indicators such as ownership structure and concentration characteristics of ownership and so on. Secondly, according "EVA rate tree" analysis indicators to analyze the increase of income, the decrease of cost and the capital cost, the improvement of capital utilization rate of those sample firms after M&A actions.The study results shows:Value effect side: firstly, the M&A activities by most of sample firms in our country have the negative influence to their capability, which is to create value in short, term. From the long-term point of view, M&A synergy start to come into play, but it has a certain time lag. Secondly, the capital utilization rates of the list companies are not ideally enough.The affect mechanism of M&A value effect: firstly, the factors which is the motivation for causing passive M&A have been analyzed theoretically, and have been approved by demonstration, but the difference are not so evidently. Secondly, the profit rate damages of sample firms that creating negative value was comparatively serious; the value-increased sample firms got the profit from improving asset utilization and the improvement of the major two sides improving income and reducing cost are not so conspicuous.